The organisers of next year's America's Cup have been cleared of allegations of fraud, the Ministry of Business, Innovation and Employment has announced.
Last month, the MBIE announced it was suspending payments to America's Cup Event (ACE) - the organising company that is part of Team New Zealand - while claims about the spending at the two organisations were examined.
ACE had claimed that the $6.4 million of work done to create the AC75 class rule was a legitimate event expense, and the $3m contribution of event money was in accordance with the MBIE contract.
On Wednesday, MBIE confirmed that the report by forensic accountants Beattie Varley had found "no evidence of financial impropriety or misappropriation of funds".
"There is no wrongdoing in this regard,' says chief executive Carolyn Tremain.
"The processes for resolving contractual disagreements is well established and we look forward to continuing to work constructively together on this matter.
"ETNZ and ACE have a different view from MBIE on whether the AC36 Event and Class Design Costs should be borne by the event."
The MBIE has also determined that Team NZ was legitimately defrauded of $1m in a scam that resulted in a payment to a television contractor in Europe ending up in a Hungarian bank account.
That matter has now been "satisfactorily resolved", Tremain adds.
Government concerns over spending emerged a day after Team NZ was forced to fire a contractor from its base, who they alleged had been leaking confidential information.
Team NZ and ACE chief executive Grant Dalton insists they've since undertaken a "thorough review of their personnel" and they "have the team to deliver on the event".
Last month, MBIE and Team NZ agreed to put a hold on Government installments until the escalation process was completed.
Tremain now says the Crown is satisfied to reinstate investment once "appropriate contractual deliverables had been met".
"It is in all of our interests that we continue to work together to deliver a successful event," she says.
"Hosts acknowledge the positive progress ACE has made with regard to delivery planning and resourcing.
"Our expectation is that operational matters will continue to be resolved at the project management level."
Team NZ chairman Sir Stephen Tindall is eager to put the incident behind them and move forward with planning for next year's event in Auckland.
"We are pleased to have this behind us," Tindall says. "ACE can now focus on putting on a great spectacle, and [Team NZ] on keeping the Cup in New Zealand."
